WEBVTT
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Umm, turning off the chat, I think you've that's already no.
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Uh, yeah, the transcripts going OK, that's perfect. OK.
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OK.
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Greetings everyone.
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Yeah.
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Ohh I'm gonna still have more ohk.
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OK.
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Hi everyone I wanna thank you for attending the department stakeholder meetings for the extended producer responsibility program for packaging uh just to explain the camera situation, the we could not get the cameras in the room out of sleep mode.
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So we have a an impromptu camera set up over there, so I apologize for that, but you don't get the better picture of the room.
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I am Brian Beneski, the head of the Department Sustainability Unit, and I will be handling technical issues of the meeting.
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I would also like to introduce Elena Bertocci.
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Jessica Nadeau they are with the Stustainability unit and the staff in charge of implementing the EPR for packaging program.
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Jim Gurrera, who's also with our staff, will also be here today.
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They will be acting as the moderators for this meeting, although we had several meetings now there are, there's still maybe some technical bumps that arise and I ask for everyone's patience when those happen, such as our camera situation.
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These meetings are part of the stakeholder process initiated by the department.
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This is the opening meeting regarding the topic of producer payments and reporting.
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An opening meeting is to provide a chance for stakeholders for event comments and allow all the stakeholders to review each other's comment.
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The second meeting, which is scheduled for July 25th, provides an opportunity for the stakeholders to ask questions of each other regarding the various positions presented and made available on these topics to the programs web page.
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We will make sure that everyone who wishes to make a statement or ask a question will get a chance to do so.
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I'd like to add that this meeting is being recorded and that the recording should be made available within the next week or so.
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Additionally, a transcript will also be made of this meeting and that will be available with any additional comments received through link on the programs web page.
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Site information from all the comments submitted and these discussions will be used as the basis for drafting rules that will be submitted to the Board Environmental Protection as part of the formal rulemaking process and December of 23.
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Comments.
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submittal is not limited to attendees of this meeting.
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The department will accept all comments for consideration submitted in writing.
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Additionally, new or additional comments can be presented at any time through the EPR for packaging email address found on our website.
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We currently have approximately 6 people here in person and 47 who are viewing us right now and people are popping up as we speak as this is both an in person and virtual meeting, we asked that those who wish to speak raise their hand and hold your statements until moderator recognizes you to allow us time to mic you.
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So everyone hears your questions.
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You do not have to be attending in person to ask questions or make a statement.
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Just use the raise hand feature.
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I will now hand the meeting over to Elena and Jessica.
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OK, so we have a few folks who have signed up to share comments and in no particular order.
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I'll just start asking that those comments get shared.
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That's right, after a comment is shared, we'll open up the floor for clarifying questions.
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Umm, but exclusively clarifying questions.
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And then once all of those have been addressed, then we'll move on to the next stakeholder.
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No.
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Do you think that would?
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Is there anybody who would like to share their comment first, whether that be online or in person?
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We don't have to go in any particular order, but we could very well start with Andy was a request already made, so we'll go ahead and OK, great.
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Yeah.
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I will make Andy a presenter, I think Andy.
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Can you hear me OK?
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But yes, even though it looks.
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OK, victory.
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Andy Hackman, on behalf of AMERIPEN, and appreciate the department scheduling the meeting to talk about producer payments.
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I feel like we've talked about this topic a lot as it intersects with reimbursement formulas and other aspects of the law.
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So appreciate that this is an important topic.
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I think one of the things to underscore is right now we don't have a firm estimate of what the entire program is going to cost.
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I think we've heard anywhere from 20 to $30 million.
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I think there are estimates that are potentially higher than that, so I would encourage the department to, as they develop the regulatory structure in this area to not be incredibly prescriptive.
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This is gonna have to be worked out with the stewardship organization that DEP selects and obviously the the budgetary requirements and initial estimates because initially I think we are going to have to rely on estimates in order to begin the collection of funding in order to to have producers equivalently fund not just the reimbursements but also the investments in infrastructure that we've talked about that will exist outside of reimbursement.
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So bottom line is is I think that the the SO is going to need a decent degree of flexibility in establishing the producer payment schedule.
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And that's just confident.
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Andy, can we just ask you to pause?
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I'm so sorry.
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Sure. Yeah.
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We're just having a little bit of trouble getting clear audio in them in the room at, so we're just gonna check in with one another and then we'll ask that you resume.
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But just complement that Andy's no matter our Internet, that's no good.
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Other people could hear it.
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Maybe they give a thumbs up.
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Yeah.
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Yeah.
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How is the virtual world indeed loud and clear?
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Yeah, they are.
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They are.
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They just don't.
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I do think it is our Internet.
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We were getting a little bit of, we were getting a notice before the meeting started.
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We could try to turn off the webcam and see if that allows for clearer audio, but I don't think it's anything I can do like with the hardwires that will make anything better.
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You turn on hardware, do right.
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Yeah, your your video was kind of going in and out.
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Yeah.
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OK, you better.
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Alright, go ahead and resume.
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Alright, thanks.
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Sorry Andy.
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Thanks Andy.
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Yeah, no problem.
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How about now?
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Can you guys hear me any better now that we've got no video?
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Yes, I think it's better, much better.
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OK, good.
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All right.
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Well, my, my my first initial point just to kind of summarize is we encourage the regulatory structure that's developed around producer fees to provide that flexibility that's going to be needed.
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I would expect that there will be decent amount of dialogue between the SO and the department, given the fact that the SO is a contractor to the department about needs and adjustments to the producers.
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Funding and fee schedule.
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So I think that and it's underlying core, I don't think the regulatory structure should spell out that you know producers at a certain level need to pay you know X dollars per ton that's going to believe have to be developed in an iterative process between cost that folks are seeing in the system and materials and everything that are used by different producers specific to the to the background documents.
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There was discussion around or questions around flat fee for those low volume producers and a question with regards to tiering, those based upon volume that seems to be appropriate and reflective of the intention given the fact that the threshold is defined at a particular tonnage and there'll be some producers that that are in different ranges in that in that funding.
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Now there was a question about whether or not there should be tiers within the flat fee structure.
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For what's considered right of the recyclable and not, I think as it comes up later in the background document, there are.
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Challenges in probably getting that data from low volume producers, as one would expect low volume producers or more likely to be small or medium sized companies that don't have significant data on their distribution in Maine.
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And so if there is an attempt to sort of bifurcate or create tiers of fees for those low volume producers based upon materials being ready, recyclable or not, we understand the desire to move folks to more readily recyclable materials.
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But it may be very difficult from the from that sector of companies to get data that's quantifiable and and or at least even estimates that are appropriate and relevant to to create predictable tiers in that space.
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And one of the the aspects from the background document and talking about base payments, it talks about the cost of managing the material.
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Only a point that we've raised and earlier comments is that there is likely to be and and hopefully there is because there is demand created in the system for recycled content revenue.
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That's that's created from these materials and we do believe that that needs to at least continue to be factored in.
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I think we'd had previous discussions around that when we talked about the reimbursement rates.
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Uh, but the the same application is necessary to be cognizant of that revenue from a particular material as we structure the baseline or the base payments for for those producers.
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And in terms of there was a a question in the background document relevant to administrative costs and whether or not those should be equal amongst each producer.
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So administrative cost for the so administrative cost for DEP, which are obviously capped in statute, unless there is a particular requirement from a producer or a subset of producers that that requires that the SO expend additional administrative time on that sector.
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We do believe that that the administrative payments should be equal across those producers that are participating in the stewardship organization.
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Now, if there is a structure whereby maybe not an explicit alternative collection program that exists outside of the SO, but if the SO is committing particular resources towards infrastructure or towards managing data for a particular subset of producers that are using a very unique material, and that administrative burden is higher based upon that aspect of their packaging or their product type or their packaging type, then perhaps it warrants sort of a additional administrative fee to those that subset of producers.
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But assuming all things are equal, we believe the administrative cost should be shared equally among those producers that are in in the so, umm, in terms of discussion in the background document around incentive to incentives being structured as penalties, it was that was a harder concept for me to wrap my mind around.
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But I I think I understand where the department is coming from.
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There may become a situation where all materials that are in the system may be well in the future are are net positive, meaning that material generates revenue versus being simply a cost.
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So we would envision a scenario in that case where the incentive may not be a lower penalty and that's how I tried to conceptually understand what I understood or tried to read from the departments document.
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And I know we're not supposed to have a dialogue in this opening meeting around that, but and maybe you wanna ask me a question about it that can help clarify.
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I don't know, however, so I do believe at some point in the future there there is, I think, in all of our desires.
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Hope that the materials that are being recycled are a net positive and generating revenue in the system and in that situation incentives versus just penalties might be more appropriate.
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And there was a question in the background.
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Documents around reporting for low volume producers.
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Sort of.
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See above.
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You know the the the, the more requirements that you put on those producers for low volume, the greater ability there will be to perhaps create bifurcations in that flat fee system.
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But I think in the big picture of things, low volume is is is meant to be low volume right.
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And and to the extent you put grade data requirements on those low volume producers, you're either not likely to get a whole lot of of good data back.
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And so I do think it may be the blunter of the fee structures within that flat fee system and where obviously I think there's expectation that that folks that are above a low volume threshold will potentially have greater data and the SO will be able to provide greater data to them.
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And there were, uh questions in the background document relative to estimates and the ability to use estimates or how estimates should be used.
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And in particularly, as we all know, EPR is just getting started and four states right now, Colorado's probably the farthest ahead in terms of selecting a PRO organization and beginning this process.
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But I think particularly early in the initial steps of of establishing the SO, selecting the SO, estimates are going to be needed particularly for our market being different than a market that's more central in the country.
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Colorado's probably again another good example where there's, you know, significant amounts of distribution that occur through a state like Colorado, where you're more likely to perhaps have have data.
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You know, we are a market that is is more akin to Canada at times than it is akin to to Colorado or Illinois or Ohio.
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So I think in that sense estimates will particularly be important, understand and take the point sort of in the questions in the background document that that's got the potential for over or underreporting certain materials.
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But it is and other states allowed for, for example, new jerseys.
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Recycled content law does allow for national estimates.
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If there's not New Jersey specific data and based upon the fact that once the product leaves a producers own warehouse, they may not know you know the exact mix of where that product is sold, I'm sure this is a comment that that may be echoed by others or has been made numerous times in the legislative arena and on other regulatory issues.
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But when it comes to that scenario, there is a significant lack of transparency at times between the producer that's going to be interfacing with the stewardship organization and what's actually sold on our shelves and here in Maine.
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So we do feel like those estimates will be accurate in the sense that they will certainly represent our population in general distribution of products.
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Certainly the producers will understand the materials that they are using and work with the SO on that, but the exact number of units sold in Maine that are made of HDPE or mixed paper or paperboard, those might be more challenging to get at a individualized unit type of of quantification.
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So yes, we do think estimates are are are going to be critical.
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Umm.
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And then in terms of sort of the final theme and the the background documents around timing and how the sort of chicken and the egg issue is addressed around startup costs, administrative costs prior to actual information flowing to the so around reimbursement it some of it made depend on bluntly which SO is is selected in the RFP process.
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We are aware of the fact that the PRO that's been selected in Colorado has initial startup funding that has been provided by producers that that is certainly one of the reasons why that organization was selected.
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We understand is that they have some of that weight and ability to to have startup costs accounted for.
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So, and that's something that is probably gonna have to exist within the relationship, the membership agreement and the contracts that exist between the SO and the producers in terms of any potential overpayment of initial startup costs that might have to be discounted at later point in time based upon the producers obligation and the system once the entire structure is set up.
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So not sure there's a way that that can be stipulated and regulation other than perhaps through the RFP process asking for the SO to clearly indicate how startup costs might be, might be funded from producers in their their bid for for application and how you know those types of startup costs would be discounted if there's overpayment as the the program begins operating.
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So I think I've worked through largely most of the the background questions that we were ready to comment on today, but appreciate that this is a topic that is of a lot of interest obviously to AMERIPEN Members and others and and hope that we have a dynamic system that is created so that the so can work with the department and informing them on how producer payments are are, are structured and done.
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So in a fairway.
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Thank you, Andy.
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Hey, you've gotta have questions.
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Still have a question for you know?
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Yeah.
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Christopher Bresee.
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You've got your your hand up, so I'm gonna make you a presenter.
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And keep Andy as a presenter.
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Bresee, apologies.
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That was a mistake in hand.
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Raise from earlier, umm, that that didn't.
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I'm sorry about that.
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Oh Nope, no worries.
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Thank you.
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Yeah.
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So we have a clarifying question for you.
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In house the the on the timing.
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I understand what you're saying about so the SO has its costs from the very beginning, and it might be most appropriate for the SO to work out with producers.
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How it funds itself at the very beginning.
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What about if that six month required funding hits before the program really has the ability to charge producers correctly?
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You mean the six month?
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So so that there needs to be the producers have everyone has to be paying within six months.
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Yeah.
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Umm, I think that will probably.
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Again depend on which SO is selected if, if.
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If it's an SO that's already operating in another state, I know the fees need to be specific to Maine, right?
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So I'm trying to think about how that could operate.
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Right.
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So you're suggesting that perhaps there may need to be an initial base payment that's stipulated for each producer in order to to sort of fulfill the obligation of the statute, if I understand the question right.
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I mean, maybe.
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Yeah, I guess yes.
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And by base payment, an additional initial payment of some kind.
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I mean uh.
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Umm yeah.
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I don't know what that you know, I don't know how to other than to stipulate that maybe in the RFP that there's an estimate made uh by the so for what an initial administrative cost would be that that that's information that's needed to be provided to the department.
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I think that might be the easiest way to get a sense of what that would be.
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If you said we need to put this in regulation, we need to say every producer owes $5000 or every producer owns a, you know, at certain level owes $100,000 for that first initial six month period and then it could be discounted, though I feel like those are just gonna be guesses at this point.
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Umm.
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And so I think the the way to get enough clarity on that would be in the RFP process.
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The SO clearly articulates how they are collecting or how they would collect if they're awarded the contract.
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The initial administration fees to collect their initial administrative costs, and they might be able to say we have 1400 producers that are currently participating in the SO organization and you know we are initially going to charge them $5000 for administrative costs in order to facilitate you know our hopefully successful bid to the state of Maine, uh.
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And that information could be the clarity that you might need to select them.
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Uh, I think setting sort of that initial fee in regulation is eventually obviously just gonna be sort of a, you know, archival reference and regulation because you move into actual implementation of the program.
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So I don't think it's necessary to be in, in, in the regulation if if the RFP is drafted in a way that that gets the information that's necessary and it also gets into in regulation trying to stipulate what the payback might be to our producer, if it if there's an overpayment where I think that can get worked out where it made quite frankly, if it if there's an overpaid, I doubt there's going to be an overpayment probably, you know an initial phase until we start getting some data.
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So uh, it it's something that I believe the SO should be able to work out and articulate that both in in their annual plans.
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So that stakeholders can understand it and in there what I would expect would be regular dialogue with the department.
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And and you mentioned in the estimates you mentioned New Jersey allowing for national estimates.
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Is that where you just referencing for example, they allow for estimates?
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Or were you suggesting that that a national estimate is the appropriate same to you?
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And so the way in in that statute, there's preference towards New Jersey specific data.
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But if it's not available for a producer, they can use estimates and I think the same approach would be reasonable and I think most producers the better data they have.
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You know, we're not a big market and and for some folks especially, we're not a big market.
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You know they.
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Yeah, having better data for producers is as an incentive.
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There's an incentive to having better data because I think estimates might increase your fees.
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Quite frankly, if you if you know that your market is smaller in Maine, then on what it is on average nationally, if you're, you know based in Illinois and distributing your product nationally, you know having better data is going to you know mean specific data.
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Is it going to probably help you reduce a burden if you're not now, if you're headquartered in New Hampshire, that might be a different occasion.
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But you know there is there is in New Jersey and the recycled content law preference towards New Jersey data.
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If it's not available, producers can use estimates, and I think that would be reasonable.
00:26:27.120 --> 00:26:44.140
But, but any New Hampshire, a company based in New Hampshire, today, if they were to use national data and to then, you know, divide their total sales by, they would probably be grossly underestimating the amount of potentially material sent into Maine.
00:26:45.510 --> 00:26:52.990
And I mean and that gets to free riders in the system or subsidizing in the system, which is always going to be a challenge.
00:26:53.970 --> 00:27:01.730
In in this this whole program is is 1 producer subsidizing another as a material, subsidizing another.
00:27:01.740 --> 00:27:08.640
That's a fight that's gonna, you know, an issue that's going to continue to, to have to be managed as best as possible.
00:27:08.970 --> 00:27:17.740
The only way I think you could could do that could try to discourage an incentive for our local companies and just use national data.
00:27:17.930 --> 00:27:32.830
But then it looks like you're discriminating based upon geography, so I would suggest that the regulatory code uh needs to to be geographically neutral and applying this.
00:27:33.260 --> 00:27:43.900
The only other way to do that would be to requires some sort of statement from a producer that that says you know we don't have Maine specific data.
00:27:43.910 --> 00:27:47.560
That's why we're using national data as an estimate.
00:27:47.570 --> 00:28:00.140
And here's the reason why, again, I'm not sure how you you put a hook in regulatory code that distance that you know.
00:28:00.150 --> 00:28:17.430
If you're, if you're going to allow estimates which the statute allows for, uh, you know if since that's the case, I don't know how you can effectually in the regulatory code prevent that scenario.
00:28:17.440 --> 00:28:20.610
If folks are, you know, you could put something on good faith.
00:28:20.720 --> 00:28:29.700
You know, producers are expected to make a good faith effort towards providing Maine specific data for compliance purposes.
00:28:29.710 --> 00:28:40.060
With this Charter, that would certainly, you know, provide clear direction to producers that we're looking for Maine specific data.
00:28:40.070 --> 00:28:47.690
The SO is looking for Maine specific data, but I don't know how you mandate it when estimates are allowed in statute.
00:28:48.800 --> 00:28:49.330
Mm-hmm.
00:28:50.140 --> 00:29:00.070
And and then I guess, sorry, another thing you mentioned was that, umm you you sort of said especially at the beginning you said that a couple of times especially at the beginning.
00:29:00.120 --> 00:29:14.010
Is there a time period after which, like so maybe initially we accept national estimates no problem, and then after, I don't know, three years, five years, we say, you know what?
00:29:14.020 --> 00:29:35.470
If you're gonna give us the national estimate, we're gonna ask you to increase it 10% because we want to make sure that you know that this isn't being underestimated due to geographical variation or whatever, and we want to incentivize the actual is that, umm, is there a time period after you which you feel like that might be appropriate?
00:29:36.570 --> 00:29:47.120
I I think five years feels relevant just because the number that feels like, you know, folks generally plan for infrastructure investments around a 5 year period.
00:29:47.800 --> 00:29:56.200
Umm, I don't know if you could put into regulatory code if you don't provide Maine specific estimates after a particular period of time.
00:29:57.130 --> 00:30:03.420
Uh, that you increase your volume by 10% because that's it.
00:30:03.430 --> 00:30:10.700
That's not linked necessarily to, you know, your market may actually shrink and Maine, you know, those types of factors.
00:30:10.750 --> 00:30:13.990
I don't think you could put an escalation clause like consumer price index.
00:30:15.130 --> 00:30:27.570
Uh, you know it it especially as there are some competing sorcery reduction goals and aspects to things nationally right now and and potentially under the performance goals here.
00:30:29.530 --> 00:30:42.340
So I don't think you can put in a regulatory code and sort of that automatic escalation if we were just talking a variable that's based on the consumer price index, you know, maybe you could think about that.
00:30:42.350 --> 00:30:54.890
But we're talking about volume of product sold and you may be flat, you know or you may be down, especially if you if we dip into a recession and any of these years that coincide with with any particular threshold.
00:30:55.690 --> 00:30:59.320
Umm, you know, an automatic escalation clause?
00:30:59.330 --> 00:31:00.820
I don't think would be appropriate.
00:31:00.830 --> 00:31:06.640
I think 5 years where you know it, it is more lenient on using national estimates.
00:31:07.570 --> 00:31:15.250
Umm, it might be an appropriate period, especially as you think about where we sit in relation to startup times and other states.
00:31:15.780 --> 00:31:29.680
You know data is going to be obviously a big factor in how how folks are complying and you know where we sit in the pack is is in contingent with where the other states sit.
00:31:29.690 --> 00:31:49.800
So we'll have better data, I think five years feels like appropriate time to to perhaps require producers to to justify if that's, you know, the case that justify to the department or to the well the SO first right, you know why they're only providing national data or national estimates.
00:31:51.350 --> 00:31:53.530
Umm, OK, thank you.
00:31:54.660 --> 00:31:55.410
I'm gonna.
00:31:55.420 --> 00:31:58.880
Tony Smith has a hand up, so I'm gonna make you a presenter.
00:32:08.580 --> 00:32:09.110
Hello.
00:32:09.120 --> 00:32:09.710
Good afternoon.
00:32:11.020 --> 00:32:11.440
Umm.
00:32:13.080 --> 00:32:17.270
Maybe I missed something through prior meetings.
00:32:25.680 --> 00:32:26.670
Not only is that a is.
00:32:17.880 --> 00:32:28.890
Do we have a magical master list of what we're calling producers that affect the state of Maine and he's used as an example?
00:32:29.320 --> 00:32:30.830
And Andy cracked me.
00:32:30.840 --> 00:32:42.980
If I'm wrong, let's say this SO says that they've identified 14,000 producers in Maine and they're going to ask them to front X numbers of dollars per each for admin costs.
00:32:43.460 --> 00:32:46.330
Do we know what those who those producers are?
00:32:47.950 --> 00:32:49.400
How many who they are?
00:32:49.410 --> 00:32:54.750
Where they're located, either Maine, New England, the country, but more particularly in the state of Maine.
00:32:55.550 --> 00:32:56.020
Umm.
00:32:56.670 --> 00:33:03.440
Or is that so and maybe this is a two way sword or or a cat chasing his tail?
00:33:04.130 --> 00:33:15.930
Is yes, so obligated to identify the producers in the state of Maine, but they're gonna need financing to be able to do that, to pay the staff to pay the costs along those lines.
00:33:15.940 --> 00:33:32.600
So I'm assuming there's no snap your fingers get a list of all the producers in that affect the state of Maine from wherever, so that that's that's well, whether the SO using and's example.
00:33:32.610 --> 00:33:35.960
Again, let's say that they weren't even gonna consider doing that.
00:33:35.970 --> 00:33:38.970
Is there a list of the producers that affect the state of Maine somewhere?
00:33:46.640 --> 00:33:46.880
Yep.
00:33:41.680 --> 00:33:47.970
I'll maybe offer and it sounds like that's maybe Tony a question for me and for the department that I don't know.
00:33:48.680 --> 00:34:05.460
But I will say that so the only benchmarks we have right now are the Canadian EPR programs that have existing producer lists than those, you know, those organizations that markets probably going to be quite different than the US.
00:34:10.110 --> 00:34:10.420
So.
00:34:05.470 --> 00:34:11.660
So I don't think we've got a good list of the number of producers that was sending, but.
00:34:18.600 --> 00:34:18.780
Yeah.
00:34:10.430 --> 00:34:23.150
So what's going to be the process to to to identify the if it is the SO, they're gonna have to be paid somehow to hire people to do that, so that that's something that would have to be OK.
00:34:24.430 --> 00:34:26.220
Yeah, I think that's gonna have to figure out.
00:34:26.230 --> 00:34:28.360
Tony, you raise it a good point.
00:34:28.370 --> 00:34:31.570
Now just offer this the SO is gonna have incentive.
00:34:52.880 --> 00:34:53.140
Right.
00:34:32.300 --> 00:34:55.150
Umm, assuming that producers are connected to it is gonna have incentive, I mean, regardless, right now I think the SO is gonna have incentive in finding as many folks that are selling product in Maine that are in covered packaging materials as possible because otherwise there is a potential for free riders in the system.
00:34:55.160 --> 00:35:01.640
You actually jogged my memory that I didn't mention as I went through the background documents that I should have commented on is there.
00:35:01.650 --> 00:35:10.280
Obviously we when we talked about in our first meeting back in December, there are exemptions in the statute and and the potential for additional exemptions.
00:35:11.120 --> 00:35:40.310
We think it is very important that, uh, there was a clear discounting of whatever, you know, volumes there are for things that the legislature chose to exempt or if the department provides additional exemptions, if those are ending up in the in the curbside recycling or or in consumer recycling streams, and there are exempted products, but they're getting recycled, you know, there shouldn't be reimbursement for that.
00:35:40.320 --> 00:35:47.970
So we think it's important that that the producer fees reflect what's covered and what is covered.
00:35:48.650 --> 00:35:52.900
Umm, by the membership of the SO and thus you know.
00:35:53.810 --> 00:36:00.100
Uh, I mean we're, we're the law is essentially creating a monopoly by only choosing 1.
00:36:00.110 --> 00:36:05.990
SO organization, so there is inherent interest in that SO and ensuring that they.
00:36:06.630 --> 00:36:15.970
Understand everybody that's selling and is covered because if not, there is the potential for that volume of material to be paid for by somebody else.
00:36:16.190 --> 00:36:16.740
OK, good.
00:36:16.750 --> 00:36:21.830
So I I can boil my my question down quite to to a small thing.
00:36:21.920 --> 00:36:23.470
There's no list of producers.
00:36:24.000 --> 00:36:53.490
The SO is going to have to identify those producers, so there has to be a mechanism in place whether it's up front, money from the state domain or from somewhere to get them up and get get them on their feet up and running and then phase out that quote, lack of a better word, subsidy to the SO because I'm assuming it's a for profit, which is wonderful because they'll be more inclined to to go ahead.
00:36:52.490 --> 00:36:53.710
Hey, not for pride.
00:36:53.720 --> 00:36:56.230
No, it's gotta be nonprofit done to the statute.
00:36:57.140 --> 00:36:57.960
No, no.
00:36:57.760 --> 00:36:58.890
No, not Maine.
00:36:59.220 --> 00:37:00.780
Other places Andy not in Maine.
00:36:59.230 --> 00:37:01.140
All right, you're right.
00:37:01.340 --> 00:37:01.850
Sorry.
00:37:02.040 --> 00:37:02.670
Yep, you.
00:37:02.290 --> 00:37:03.230
Wow, that's awesome.
00:37:03.120 --> 00:37:04.550
Nice to I stand corrected.
00:37:05.350 --> 00:37:05.710
Thank you.
00:37:08.580 --> 00:37:09.590
Not often you were.
00:37:09.600 --> 00:37:09.960
You were.
00:37:08.340 --> 00:37:13.960
But it's it's at the end of the day, the in the the compliance is is a department responsibility.
00:37:14.720 --> 00:37:15.190
Umm.
00:37:15.540 --> 00:37:19.660
But you know, there'll be if it is a, it is a heavy lift.
00:37:19.670 --> 00:37:21.980
Your right, Tony, to get people signed up right away.
00:37:32.240 --> 00:37:32.400
Yeah.
00:37:21.990 --> 00:37:44.960
And I think Andy pointed to the fact that you're gonna have going to be aware of of who's signed up in other jurisdictions to a certain extent that can help part of the reporting is gonna be with UPC code so that you're gonna be able to clearly see what is umm been registered and what's not been registered and then department outreach.
00:37:45.020 --> 00:37:46.230
You know, we're working on that.
00:37:46.240 --> 00:37:50.400
How to get in touch with producers to let them know that they need to?
00:37:50.570 --> 00:37:52.840
You know, I think there's probably a lot, you know, they need to.
00:37:50.720 --> 00:37:57.730
Yeah, but but remember day one, when that SO turns the key and opens their office door, they need some income.
00:37:57.740 --> 00:38:00.460
They need some a revenue stream coming in to pay their bills.
00:38:00.960 --> 00:38:02.590
So that's just food for thought.
00:38:02.600 --> 00:38:07.980
Down the road, we can't solve it right now, but they one they're gonna need some revenue coming in.
00:38:10.160 --> 00:38:10.450
Yeah.
00:38:10.140 --> 00:38:10.460
And I.
00:38:10.460 --> 00:38:11.520
Thank you, Tony.
00:38:14.550 --> 00:38:14.790
Sorry.
00:38:14.800 --> 00:38:15.240
Go ahead, Andy.
00:38:16.050 --> 00:38:16.530
With those.
00:38:15.910 --> 00:38:21.560
No, I was just gonna say I kind of referenced that in in my comments relative to it.
00:38:28.380 --> 00:38:28.810
Ohh.
00:38:31.820 --> 00:38:31.960
Yes.
00:38:21.800 --> 00:38:45.290
Depending upon the SO that is selected through the RFP process, you know they're they're the RFP process could could create preference for organizations that are already have, you know, existing to your point Tony membership lists and extensive coverage in the industry and you know startup cost cover so.
00:38:42.260 --> 00:38:45.750
Yes, that's that note.
00:38:45.760 --> 00:38:46.700
I did take down.
00:38:46.710 --> 00:38:47.350
You're correct.
00:38:47.360 --> 00:38:56.140
So will the RFP request a an outline of from a perspective?
00:38:56.150 --> 00:39:02.250
SO do they have funding sources that they can tap on day one?
00:39:07.710 --> 00:39:08.510
I think that's probably.
00:39:08.070 --> 00:39:08.720
Or should it?
00:39:08.910 --> 00:39:09.570
Or should it?
00:39:11.360 --> 00:39:12.750
Should they be required to?
00:39:12.760 --> 00:39:15.720
To to include that to give them the edge up.
00:39:17.210 --> 00:39:17.640
I know what?
00:39:16.990 --> 00:39:18.770
I think that's what Andy suggesting, correct?
00:39:19.550 --> 00:39:20.350
Is that what you said?
00:39:19.340 --> 00:39:22.410
Yeah, I think I've suggested that I don't think the department can answer that.
00:39:22.760 --> 00:39:24.340
Yes, I don't know.
00:39:26.570 --> 00:39:27.440
OK, let's leave it.
00:39:27.450 --> 00:39:28.780
I'll leave it as a suggestion.
00:39:26.710 --> 00:39:29.340
I think no, I don't think we can do that.
00:39:29.350 --> 00:39:31.010
But we'll take any suggestions.
00:39:31.900 --> 00:39:34.520
It it will be a comment that we make if that helps.
00:39:35.280 --> 00:39:35.560
OK.
00:39:35.020 --> 00:39:35.650
Yeah.
00:39:35.710 --> 00:39:37.830
Thanks Andy and folks.
00:39:39.280 --> 00:39:39.550
Thanks.
00:39:39.560 --> 00:39:40.320
Thank you.
00:39:42.240 --> 00:39:44.940
I'm trying to get back fired up into the EPR mode.
00:39:44.950 --> 00:39:49.780
We've had quite a hiatus and that that that's get back in the groove.
00:39:49.830 --> 00:39:50.210
Thank you.
00:39:51.140 --> 00:39:51.540
Thanks, Tony.
00:39:52.760 --> 00:39:53.200
Thanks.
00:39:54.640 --> 00:39:56.040
Anyone else have any?
00:39:56.050 --> 00:39:56.290
Uh.
00:39:58.230 --> 00:39:59.890
Clarifying questions for Andy.
00:40:00.360 --> 00:40:01.230
OK, sure.
00:40:01.360 --> 00:40:02.510
No, they can't see me, right?
00:40:02.590 --> 00:40:03.050
Right.
00:40:03.100 --> 00:40:03.510
OK.
00:40:03.560 --> 00:40:04.090
Hi everybody.
00:40:04.100 --> 00:40:05.530
I'm Sarah Nichols from NRCM.
00:40:05.540 --> 00:40:08.570
Hi, Andy, hear me.
00:40:09.240 --> 00:40:10.050
Yeah, I can hear you.
00:40:10.320 --> 00:40:10.790
Can you hear me?
00:40:10.850 --> 00:40:24.720
Umm yeah, I guess my question is about what you just clarifying what you were saying about revenue generated from the sale of the materials and how that might impact the producer fees.
00:40:24.730 --> 00:40:40.180
I guess because I guess in my mind I pictured, you know the the municipalities would be getting reimbursed their you know their net cost of the municipalities are earning the they're, they're the ones earning the revenue off of this material and they would only need to be reimbursed what's leftover if you know.
00:40:40.860 --> 00:40:48.470
So to me that would be kind of baked in, but I was curious if that like you were describing it differently, I don't know.
00:40:48.520 --> 00:40:51.020
How did you picture the revenue in there?
00:40:49.150 --> 00:40:52.060
Well, well, well.
00:41:01.940 --> 00:41:02.170
Mm-hmm.
00:40:52.650 --> 00:41:05.930
The the background document doesn't suggest net cost because net cost would be inclusive of revenue derived from that material if it the the the reimbursement formula.
00:41:06.000 --> 00:41:14.450
So far that we've that we've reviewed and the background documents talk about pure cost, uh, not net cost.
00:41:14.460 --> 00:41:22.070
So if we're in agreement that that is net cost after revenue has been subtracted, I think we would be in agreement on that.
00:41:22.550 --> 00:41:23.820
That's the point I was trying to make.
00:41:23.890 --> 00:41:24.290
OK.
00:41:25.260 --> 00:41:43.240
So if if if a material is constantly not deriving revenue for a municipality and Umm is is it a negative value to to recycle then it's gonna have, you know a cost associated.
00:41:43.250 --> 00:41:52.880
But if eventually we get to everything as a net that revenue then and and if the revenue covers costs, that's the other factor, right?
00:41:52.890 --> 00:42:07.610
Like so, we may get to that point, I think that's everybody's aspirational goal for a program is that and at one point for materials we, you know, they were covering costs and municipalities were making money on recycling, right?
00:42:07.620 --> 00:42:10.350
That's why we're in the problem that we're in is that that stopped happening.
00:42:10.360 --> 00:42:30.620
So if we get to every material that's in packaging commerce at a net positive that goes above the cost of municipalities, one would argue you know, what are we doing, you know, but I I doubt I see this law sun setting, to be blunt.
00:42:31.340 --> 00:42:38.690
Umm, so the producer fees need to be reflective of that revenue.
00:42:38.740 --> 00:42:44.420
So net cost would be I think what we could agree on if if revenue is included.
00:42:45.380 --> 00:42:45.720
Gotcha.
00:42:45.730 --> 00:42:46.330
Alright, thank you.
00:42:48.390 --> 00:42:50.660
Can I can I can we need to follow up here.
00:42:50.830 --> 00:42:51.090
So.
00:42:52.230 --> 00:42:52.960
So that means.
00:42:52.970 --> 00:42:55.800
So if we're talking, so let's talk about aluminum for a second.
00:42:56.170 --> 00:43:12.190
Just can I did some like super rough numbers and if it looks like aluminum for the the numbers we use is gonna be a that money maker for the municipal, the municipality that we used in that case.
00:43:12.810 --> 00:43:16.270
And do you feel like that?
00:43:17.510 --> 00:43:25.190
Are you suggesting that that money be used to offset on administrative fee for someone who produces aluminum or just that?
00:43:27.330 --> 00:43:28.210
Is that what you're suggesting?
00:43:29.370 --> 00:43:31.440
I I think that's possible right?
00:43:31.450 --> 00:43:32.640
Cause cause.
00:43:32.710 --> 00:43:34.230
Let's say you're only an aluminum.
00:43:34.240 --> 00:43:34.940
That's all you.
00:43:35.190 --> 00:43:41.850
That's all you're packaging material it is, and there's existing infrastructure.
00:43:41.860 --> 00:43:42.800
You know you're not.
00:43:43.020 --> 00:43:44.960
There's no special infrastructure now.
00:43:45.390 --> 00:44:02.340
The infrastructure budget exists outside of direct municipal reimbursements, so there's probably some cost there, but for the so right, when they look at Hackman's can or Hackman's sodas and I'm only in aluminum and aluminum across the state or across the program as a net positive.
00:44:03.600 --> 00:44:07.340
You know what else does that money get used for it, but administrative cost?
00:44:09.220 --> 00:44:09.480
Right.
00:44:08.910 --> 00:44:09.670
Yeah.
00:44:09.710 --> 00:44:09.910
OK.
00:44:12.170 --> 00:44:12.440
Thank you.
00:44:18.380 --> 00:44:18.790
I don't know.
00:44:18.800 --> 00:44:19.870
Tony's hand is still at work.
00:44:20.000 --> 00:44:21.000
Or no, it doesn't.
00:44:21.890 --> 00:44:23.470
You can put Tony send down.
00:44:23.480 --> 00:44:26.810
Ohh OK Dave Westerhof has his hand up.
00:44:26.820 --> 00:44:28.450
I'm gonna make him a presenter.
00:44:45.790 --> 00:44:46.720
Nope, sorry.
00:44:47.270 --> 00:44:47.780
Can you hear me?
00:44:48.400 --> 00:44:49.420
Yes, we can.
00:44:49.520 --> 00:45:00.050
So so if Aluminums net positive and is being recycled, but it's only being recycled at 40%, shouldn't you know or or some low number?
00:45:00.060 --> 00:45:08.270
Shouldn't cost go to improve aluminum recycling rates to a certain target?
00:45:11.420 --> 00:45:14.920
Intentionally, but that's not a municipal cost that's being reimbursed though, right?
00:45:15.340 --> 00:45:44.050
And it's probably an SO education administration, maybe it's an infrastructure cost if if the SO is, it's funding infrastructure, but it's not a because the background document talks a lot about the producer payments being reflective of municipal costs for that material because they're not because let's say 70% of aluminum is recycled, 30% is not.
00:45:44.060 --> 00:45:45.410
That's a consumer choice, right?
00:45:45.420 --> 00:45:58.400
That the consumer chose to no one is probably not the best you, because we've got the bottle Bill, but let's assume I'm not making sodas, so I'm I'm making Andy's jams and jellies in aluminum cans, right?
00:45:59.490 --> 00:45:59.610
But.
00:45:58.490 --> 00:46:04.550
But the consumer is choosing to put that aluminum can in their trash.
00:46:05.640 --> 00:46:07.440
That's, that's that disconnect, right.
00:46:08.240 --> 00:46:31.850
So again, if if the material is a net 0 cost and in generating revenue for that municipality, the fees on that producer for that packaging type should only be reflective of the administrative costs, the infrastructure costs for the overall program that's relevant to you know that producer.
00:46:31.910 --> 00:46:36.080
So Hackman's jams and jellies is is only being charged.
00:46:43.840 --> 00:46:44.140
Right.
00:46:36.090 --> 00:46:46.410
I'm not being charged for municipal cost because municipals' governments are making money off of my packaging material that cover and go beyond their cost.
00:46:46.420 --> 00:46:53.940
So that money, yes, could go for an education campaign that says, hey, don't throw your can away.
00:46:54.450 --> 00:47:10.950
Like you know, that could be a cost that's relevant, you know, here or or if there's a, you know, drone that flies around, you know, in the landfill that picks up aluminum, you know, in the future.
00:47:11.750 --> 00:47:16.320
UM, then, then perhaps some of my funding could do.
00:47:16.330 --> 00:47:19.920
Could could fund, you know, some of Hackman's jams and Jelly cans?
00:47:19.930 --> 00:47:32.970
Fees could fund that special infrastructure, but unless the municipality is doing that and and then they're not at a net, uh, then it's not a net positive right for that material.
00:47:32.980 --> 00:47:55.050
If every municipality is suddenly having to invest or wants to invest in drones to pick the aluminum cans out of the trash, umm, so there's a yes there, but that it it may not be a municipal reimbursement cost, which is how just the background documents seem to think about the producer fees as being solely or not solely.
00:47:55.060 --> 00:48:11.290
I know you guys are not thinking solely, but you know tie. A lot to uh the cost for that that material at the municipal level where there there. There may come a point where you know a particular material is doing so.
00:48:11.300 --> 00:48:18.300
Well, that that really you're only covering administrative costs for the for the SO and for the department?
00:48:24.080 --> 00:48:24.230
OK.
00:48:24.550 --> 00:48:24.860
Thank you.
00:48:27.460 --> 00:48:28.070
Thank you guys.
00:48:31.190 --> 00:48:37.900
OK, we don't have any more follow up questions and house doesn't seem like we have any more online either.
00:48:38.010 --> 00:48:39.020
So thank you, Andy.
00:48:39.450 --> 00:48:39.630
Yeah.
00:48:39.640 --> 00:48:41.590
We're gonna move to the next comment.
00:48:41.600 --> 00:48:42.130
Share.
00:48:42.270 --> 00:48:42.660
Great.
00:48:42.670 --> 00:48:43.060
Thanks Andy.
00:48:45.790 --> 00:48:47.560
Which can really be anybody.
00:48:48.050 --> 00:48:53.260
Wait, doing from the audience, we only have one in house.
00:48:53.760 --> 00:48:56.470
We can actually, Susan Bush have their hand up.
00:48:56.480 --> 00:48:59.190
So, OK, we'll go to Susan.
00:48:59.400 --> 00:49:00.810
I'm gonna make you a presenter.
00:49:12.180 --> 00:49:14.860
Uh, we can't hear you on you.
00:49:16.920 --> 00:49:17.200
OK.
00:49:16.960 --> 00:49:17.340
Hi there.
00:49:19.220 --> 00:49:21.570
Thank you all for the opportunity to speak.
00:49:21.580 --> 00:49:30.890
I'm Susan Bush and I'm the partners at Circular Matters and working for the Circular Action Alliance.
00:49:31.910 --> 00:49:35.890
So excited to be stopping, sending them to the state of Maine.
00:49:36.650 --> 00:49:38.420
So Andy, I had a.
00:49:37.910 --> 00:49:40.040
Sorry, Susan, could you speak a little more loudly?
00:49:45.000 --> 00:49:45.690
That's better.
00:49:41.720 --> 00:49:47.810
See if I can up my volume here is that does that help? OK.
00:49:45.700 --> 00:49:48.090
Thank you. Yes.
00:49:50.240 --> 00:49:51.050
Sorry about that.
00:49:51.320 --> 00:49:52.500
So Andy, I did.
00:49:52.620 --> 00:49:55.910
I did agree with really I think everything that Andy had to say.
00:49:57.350 --> 00:50:06.320
Excellent thoughts and I would I would like to add that there is a guidance document out there for producers and Ontario that's been developed.
00:50:07.170 --> 00:50:15.520
I think it's on the Stewardship Ontario website, which leads producers through methods to estimate the quantity sold in Ontario, for example.
00:50:16.000 --> 00:50:19.020
And so, but basically, Andy's right.
00:50:19.070 --> 00:50:27.300
Maine is a tough state to know your exact quantities sold into the state, and maybe through, you know, attaching.
00:50:27.350 --> 00:50:30.060
You know, there may be some.
00:50:31.150 --> 00:50:35.020
I wonderful technologies that are evolved to help with that.
00:50:35.110 --> 00:50:41.460
We could attach more data to skews, for example to allow for better, better data over time, but it will take time.
00:50:41.670 --> 00:50:51.540
So I agree that there should be some estimation allowed, but I also don't think that that estimation needs to be laid out in the rules.
00:50:51.840 --> 00:51:03.400
I think that the stewardship organization can develop that and work with each producer to ensure that what they're using for an estimation methodology is acceptable.
00:51:04.830 --> 00:51:05.300
Umm.
00:51:05.390 --> 00:51:17.460
And you know, beyond that there are many questions in your document that sort of set that sort of alluded to very specific rate questions for example.
00:51:17.990 --> 00:51:26.410
And in general, I think those those specific should also be left up to the stewardship organization.
00:51:27.240 --> 00:51:27.650
Umm.
00:51:27.780 --> 00:51:29.770
Eco modulation and Andy got it.
00:51:29.780 --> 00:51:41.850
There's a bit too and and I I think umm, the other speaker also did Tony may have mentioned this that it's it's gonna take some time for producers to really get a good handle on their data.
00:51:43.190 --> 00:51:44.960
So maybe that was Sarah who said that.
00:51:45.030 --> 00:52:09.340
But at any rate, the eco modulation, I think incentives and disincentives could be should be implemented after a better handle is had on all of the data and the program costs because it's kind of going to amplify, I think inequities to establish eco modulation incentives and disincentives before that as well known.
00:52:11.090 --> 00:52:11.470
Umm.
00:52:12.590 --> 00:52:16.580
In some cases that's been done like two or four years down the line.
00:52:16.590 --> 00:52:23.420
For example, when when that is suggested that the these sort of data is not leveled out.
00:52:25.530 --> 00:52:32.790
Umm, one question was asked too in the document, should one package and act attribute be weighed more heavily than another?
00:52:33.360 --> 00:52:53.470
And I think again that that should be stuffed up to the SO to figure out, you know the I think the Maine model is to say, OK, main, what are your goals for this program and lay out those goals in the RFP and then let the stewardship organization figure out how to best achieve those goals.
00:52:53.580 --> 00:52:58.140
I think that's sort of just the the foundational sort of thinking.
00:53:00.560 --> 00:53:05.820
And I agree that the costs should be reimbursed.
00:53:06.430 --> 00:53:07.760
They should be the net costs.
00:53:07.770 --> 00:53:08.090
What?
00:53:08.100 --> 00:53:10.460
You didn't say we're discussing totally agreement there.
00:53:11.130 --> 00:53:12.130
That's pretty standard.
00:53:14.390 --> 00:53:14.840
Umm.
00:53:14.990 --> 00:53:19.880
And I think I I looked at your background document on reimbursements to municipalities.
00:53:19.890 --> 00:53:33.570
And so it does appear that disposal costs are not covered in the municipal reimbursement costs, but I'm understanding right transportation to and collection with the package and type that is ultimately disposed is reimbursable.
00:53:34.280 --> 00:53:41.410
I think I think ideally for packaging it's not readily recyclable.
00:53:41.840 --> 00:53:49.800
The fees would be used to help develop infrastructure, to recycle that material type might be innovation, might be infrastructure for example.
00:53:52.110 --> 00:53:57.520
Ah, and I think that was the Maine points I wanted to.
00:53:57.530 --> 00:54:01.990
I wanted to make here today OK, this makes sense.
00:54:07.720 --> 00:54:08.470
I have a question.
00:54:08.480 --> 00:54:09.780
Susan, this is Eleana Bertocci from Maine DEP.
00:54:09.850 --> 00:54:16.790
You said you think that additional data will help with the eco modulation.
00:54:16.800 --> 00:54:24.430
So, for instance, one of the requirements and statute is that toxicity be part of eco modulation.
00:54:24.440 --> 00:54:33.270
So you're saying that right now the producers might not know if they're packaging has whatever toxic component.
00:54:33.280 --> 00:54:33.960
I mean, I guess.
00:54:36.350 --> 00:54:43.710
Some of the ones that are called out in the in the in the statutes that that are referenced are, say PFAs, phalates.
00:54:43.720 --> 00:54:52.170
Producers might not know that that those chemicals are present in their packaging at this point.
00:54:52.180 --> 00:54:54.530
Is that what you're saying for instance?
00:54:54.870 --> 00:54:55.050
Yeah.
00:54:55.060 --> 00:55:15.400
Or they don't know the portion of their packaging, the quantity of packaging, you know, sold in Maine that has that toxic toxicity, toxic components and that I think there needs to be some clarity around is that just the portion that's in that deck with the food is that the entire package does that pertain to components as well.
00:55:17.390 --> 00:55:19.470
OK, so they might be aware of the.
00:55:20.120 --> 00:55:26.790
sounds like they're they're likely aware of the makeup of their individual packages.
00:55:26.800 --> 00:55:29.540
It's more an issue of which packages are going to Maine.
00:55:31.800 --> 00:55:32.020
In my.
00:55:31.570 --> 00:55:32.220
I think so.
00:55:32.690 --> 00:55:33.060
I think so.
00:55:34.420 --> 00:55:37.210
I mean, I maybe small producers don't have any idea.
00:55:37.220 --> 00:55:37.730
I don't know.
00:55:37.780 --> 00:55:41.940
I I really can't speak for all producers, so I think the large producers have an idea.
00:55:44.290 --> 00:55:44.610
Thank you.
00:55:49.560 --> 00:55:54.210
A questions for Susan from the Internet world.
00:56:00.610 --> 00:56:01.140
No, no.
00:56:01.150 --> 00:56:01.700
From here.
00:56:01.770 --> 00:56:02.360
OK.
00:56:02.510 --> 00:56:03.160
Well, so then.
00:56:03.170 --> 00:56:04.020
Oh wait.
00:56:04.030 --> 00:56:07.560
Actually, Peter here Bierbaum has a question.
00:56:07.570 --> 00:56:07.850
Hold on.
00:56:22.410 --> 00:56:22.770
You.
00:56:21.790 --> 00:56:25.870
Susan, thank uh, thank you for your input.
00:56:26.470 --> 00:56:29.980
You've mentioned a guidance document for producers in Ontario.
00:56:30.710 --> 00:56:30.890
Umm.
00:56:31.410 --> 00:56:51.480
What I was curious is with producers, is it basically an obligation to use best available information and does that interior guidance document follow that in terms of recommendations on how to go about getting that information?
00:56:52.930 --> 00:57:00.070
Does it have published for example default datas Canada Wide or Ontario wide?
00:57:01.600 --> 00:57:06.970
Alright, it's it's kind of a how to it.
00:57:06.980 --> 00:57:09.080
It gives steps and options.
00:57:10.700 --> 00:57:11.130
I could.
00:57:11.140 --> 00:57:14.470
I'd be happy to share that with everybody.
00:57:14.480 --> 00:57:16.040
It's a it's a lengthy document.
00:57:16.050 --> 00:57:19.950
It's 300 pages and there's lots of like links and so on.
00:57:21.000 --> 00:57:21.250
Umm.
00:57:20.320 --> 00:57:24.100
So I I think calling it best practices would be appropriate.
00:57:26.350 --> 00:57:27.000
Thank you.
00:57:27.050 --> 00:57:27.830
That would be great.
00:57:37.250 --> 00:57:42.460
Any other questions from the Internet?
00:57:48.010 --> 00:57:48.760
OK.
00:57:48.870 --> 00:57:50.000
Well, Susan, thank you.
00:57:50.390 --> 00:57:51.110
Thank you, Susan.
00:57:51.100 --> 00:57:51.470
Yeah.
00:57:51.480 --> 00:57:51.740
Welcome.
00:57:52.410 --> 00:57:52.810
Thank you.
00:57:54.090 --> 00:58:03.880
The chat is disabled, so I'm not entirely sure how you could share the document at this time and we can put it as a comment on our with the other comments.
00:58:03.890 --> 00:58:04.380
Perfect.
00:58:04.430 --> 00:58:04.820
OK.
00:58:04.830 --> 00:58:14.710
So Susan, we have an email address that you could send that document to and then we can make sure that it's posted in the comments section of our website.
00:58:16.910 --> 00:58:17.140
Right.
00:58:18.650 --> 00:58:23.380
I can send that off to you now, or I can email it to you later.
00:58:23.450 --> 00:58:24.170
Whatever you prefer.
00:58:24.910 --> 00:58:26.830
And if you don't mind emailing it to me, that be fantastic.
00:58:27.080 --> 00:58:27.840
OK, cool.
00:58:27.750 --> 00:58:28.090
Thank you.
00:58:37.840 --> 00:58:38.270
OK.
00:58:38.280 --> 00:58:50.060
So yeah, we can keep going along this if you'd like to share, you can put a hand up if you're online and we can give you the floor. Umm.
00:58:54.550 --> 00:58:55.950
Whenever are you gonna say anything?
00:58:55.960 --> 00:58:57.780
Christine, I'm not prepared for that.
00:58:59.970 --> 00:59:00.750
And what's up?
00:59:00.760 --> 00:59:03.000
Yeah, yeah, yeah.
00:59:03.430 --> 00:59:06.000
Alright, Curtis can go.
00:59:06.050 --> 00:59:06.580
OK. OK.
00:59:10.360 --> 00:59:11.020
For I just need.
00:59:11.030 --> 00:59:12.410
Thank you, presenter.
00:59:12.500 --> 00:59:13.290
I just sit right here.
00:59:13.400 --> 00:59:14.400
Yeah, yeah, yeah.
00:59:17.450 --> 00:59:18.990
We really outdid ourselves.
00:59:19.000 --> 00:59:22.570
First time gonna keep because you see the translator.
00:59:22.090 --> 00:59:22.670
Hi there everybody.
00:59:23.550 --> 00:59:24.020
Hi, Curtis.
00:59:25.270 --> 00:59:25.860
Can you hear me OK?
00:59:26.670 --> 00:59:27.370
Yes, we can.
00:59:27.380 --> 00:59:27.710
Thank you.
00:59:28.320 --> 00:59:29.560
OK, by one SEC.
00:59:31.660 --> 00:59:32.130
All right.
00:59:33.040 --> 00:59:38.220
I'll be really brief because I think Andy did here on head on some of the points I was going to mention.
00:59:38.660 --> 00:59:39.570
First of all, I'm Curtis.
00:59:39.580 --> 00:59:41.950
Picard, with the Retail Association of Maine.
00:59:42.320 --> 01:00:03.050
So I think the one point I wanted to raise from the background information is it mentions again the reporting of UPC codes and I recall one of the things we tried to highlight really strongly during the public hearing process on this issue is the sheer number of UPC codes that are out there.
01:00:03.300 --> 01:00:12.590
We're literally talking hundreds of 1,000,000 and we know that DP and the SO is gonna be really challenged to manage these.
01:00:12.600 --> 01:00:20.570
It's going to be difficult for producers to provide them accurately and timely to give you an example.
01:00:20.680 --> 01:00:37.800
There was recently a 15 cent pesticide fee applied to pesticide products sold in Maine that, thankfully, was repealed because one of the issues was it was very difficult to determine which products were considered pesticides or not.
01:00:38.680 --> 01:00:50.340
The Board of Pesticide Control maintains a list of about 12,000 different pesticides, but actually tracking the products proved to be a lot more problematic than anybody envisioned.
01:00:50.710 --> 01:00:54.440
So that's just one subset of products that happens to come and packaging.
01:00:54.650 --> 01:00:56.800
And now we're talking about all products.
01:00:57.730 --> 01:01:00.780
So I just wanted to highlight that I don't necessarily have a solution.
01:01:01.510 --> 01:01:06.080
We just know this is gonna be a huge challenge for everybody involved.
01:01:06.090 --> 01:01:17.480
We think it's going to be impossible to maintain a list of products by UPC code that are complying with this law and maintaining a list of products by UPC codes that are not complying with this law.
01:01:17.870 --> 01:01:20.840
It's going to be impossible for retail or be able to track those.
01:01:21.280 --> 01:01:21.830
Look at them.
01:01:21.840 --> 01:01:24.250
Determine which products are not compliant.
01:01:24.260 --> 01:01:30.740
So just wanted to continue to flag that because it did something that's gonna need to be addressed in some way, shape or form.
01:01:36.670 --> 01:01:37.090
Yep.
01:01:37.880 --> 01:01:38.540
Thanks, Curtis.
01:01:38.550 --> 01:01:40.020
That's the extent of your comments.
01:01:40.960 --> 01:01:44.690
Yeah, for now, we'll submit some written comments by the the next meeting.
01:01:44.700 --> 01:01:49.390
It's always helpful to listen to other people's input into these meetings.
01:01:49.760 --> 01:01:51.710
We found that that's been a more productive way to go.
01:01:52.970 --> 01:01:53.640
That's fine.
01:01:53.650 --> 01:01:57.700
We're accepting comments on an ongoing basis, so thank you.
01:01:57.770 --> 01:01:59.360
We do have some follow up questions.
01:01:59.370 --> 01:01:59.660
I do.
01:01:59.670 --> 01:02:03.650
I I just sorry if I missed your point here.
01:02:11.540 --> 01:02:11.900
Correct.
01:02:04.100 --> 01:02:13.060
It's gonna be impossible to keep a list of registered products by UPC code and can you tell you that a little bit?
01:02:14.340 --> 01:02:15.070
Yeah, literally.
01:02:15.080 --> 01:02:20.720
There's gonna be 160 million different UPC codes out there.
01:02:22.920 --> 01:02:23.600
You know, I was.
01:02:23.610 --> 01:02:25.210
I was digging around for it this morning.
01:02:25.220 --> 01:02:26.190
I couldn't find it.
01:02:26.520 --> 01:02:31.310
I know at the federal level there was an effort to list by UPC codes.
01:02:31.320 --> 01:02:38.950
All the tobacco products that are sold and it was hundreds and hundreds of pages just for tobacco products.
01:02:39.260 --> 01:02:44.370
So I just want to highlight the tracking things by UPC code may sound logical.
01:02:45.220 --> 01:02:48.010
It's going to be a lot more challenging than you realize.
01:02:48.380 --> 01:02:54.390
The other thing I would emphasize is that products are constantly coming and going from the marketplace.
01:02:54.990 --> 01:03:05.040
That was one of the things we learned with the pesticide fee that there could be a new scent of bleach, for example, that came on the market that would be replacing another one.
01:03:05.050 --> 01:03:10.590
So it would have a completely separate UPC code then lemon scented bleach for example.
01:03:11.350 --> 01:03:18.010
So these were just some of the challenges that we saw in that area and that was part of the reason that that fee was ultimately repealed.
01:03:22.040 --> 01:03:22.690
Thank you.
01:03:22.750 --> 01:03:24.330
Thank you, Andy.
01:03:24.340 --> 01:03:26.780
Has his hand up and now I'm going to make you a presenter.
01:03:31.850 --> 01:03:32.040
You.
01:03:35.070 --> 01:03:35.660
Is it real?
01:03:35.670 --> 01:03:36.450
Yeah, that's real.
01:03:38.590 --> 01:03:40.710
And you I I handy.
01:03:42.150 --> 01:03:42.260
Hey.
01:03:40.760 --> 01:03:46.940
Any cars so there there will be more than just a I totally agree with what Curtis says.
01:03:47.310 --> 01:03:50.680
His comment was around the UPC code and I'll say isn't it.
01:03:50.690 --> 01:03:57.460
So after I make the statement, but I would agree and around UPC code.
01:03:57.470 --> 01:04:00.000
I know we highlighted it during the legislative process.
01:04:00.010 --> 01:04:12.700
I know it's in the statute, but as it can relate to the regulations in deference here around estimates, UPC codes can change week to week on a product.
01:04:13.400 --> 01:04:34.550
Uh, so whatever data is submitted to the SO with a full list of UPC codes is immediately going to be dated a week later as products are introduced, go out of the market, it is there is that much churn in the UPC code space.
01:04:35.470 --> 01:04:36.560
Isn't that so Curtis?
01:04:37.230 --> 01:04:37.900
That is correct.
01:04:39.000 --> 01:04:40.100
Just wait.
01:04:46.390 --> 01:04:48.330
Yeah, because because it.
01:04:46.720 --> 01:04:48.520
My my I let mean.
01:04:40.110 --> 01:04:49.210
Are you saying pumpkin spice bleach might have one UPC code today in a different one in a month or you on in a month?
01:04:51.390 --> 01:05:00.190
Especially pumpkin spice though, though there are members of my my immediate family that try to keep pumping spice in our house, way beyond its expiration date.
01:05:02.430 --> 01:05:10.800
That uh, that, that and and Old Bay goldfish I am sitting on a stock from last year of Old Bay goldfish.
01:05:09.940 --> 01:05:10.940
The look.
01:05:11.230 --> 01:05:14.240
That is no longer carried in enough of the Hannaford stores.
01:05:14.500 --> 01:05:14.640
You.
01:05:14.670 --> 01:05:16.870
Just saying Curtis so.
01:05:19.310 --> 01:05:19.540
Who?
01:05:20.230 --> 01:05:21.990
Ohh God thank you.
01:05:21.530 --> 01:05:23.800
But yeah, that that is that is correct.
01:05:24.350 --> 01:05:29.360
You know, products are constantly added to the marketplace or taken off and it's not just a different scent.
01:05:29.370 --> 01:05:31.690
For example, it could just be a different size container.
01:05:32.360 --> 01:05:40.350
Umm, you know, you've seen and actually a good example of that more recently has been with the inflation costs.
01:05:40.360 --> 01:05:43.130
You've seen packaging sizes decrease.
01:05:43.140 --> 01:05:47.510
For example, you know we always that's example I have is ice cream.
01:05:47.880 --> 01:05:50.120
We always used to buy ice cream and half gallons.
01:05:50.130 --> 01:05:57.050
We'll know those half gallons are a lot smaller and they do that to keep the price point more manageable with customer expectations.
01:05:57.200 --> 01:05:59.550
So we've seen a lot of that over the last year.
01:05:59.560 --> 01:06:10.440
Plus, with inflation being what it is that you're seeing, packaging sizes decrease, you know what used to be a 12 ounce bottle might be 11.2 ounces now or something like that.
01:06:10.910 --> 01:06:13.710
So all those changes require different UPC code.
01:06:14.900 --> 01:06:15.290
It's and.
01:06:15.300 --> 01:06:21.250
So I'm gonna risk another a this is impossible answer, but so that.
01:06:21.260 --> 01:06:36.280
So if it's a different package, wouldn't wouldn't theoretically, we want to be knowing that that's a different package now being being sent into Maine and the producer should be playing for a smaller package instead of the bigger package.
01:06:37.210 --> 01:06:38.220
Ohh absolutely.
01:06:38.290 --> 01:06:44.930
I'm just saying it's gonna be a lot more difficult than you realize and try to manage it because you're talking about hundreds of millions of different products.
01:06:46.200 --> 01:06:59.020
Alright, I think I can offer within the regulatory context here you there's going to be package flow decode throughout the year.
01:07:00.280 --> 01:07:02.420
You know you're gonna get to get.
01:07:02.430 --> 01:07:05.510
This goes also a timing issue that's in the background.
01:07:05.520 --> 01:07:07.610
Document it.
01:07:07.620 --> 01:07:16.170
It's going to need to be a look back period for the previous year, at least initially, because you can't always project that you're going to be in a 5 ounce package.
01:07:16.860 --> 01:07:23.270
You know, for the first six months of the year and for sure you're going to be in a 3 1/2 ounce package.
01:07:23.280 --> 01:07:37.490
The back half of the year, so there's going to need to be flexibility for the SO to true up two years worth of budgets because you're going to be outlaying money in, in reimbursement costs.
01:07:40.040 --> 01:07:45.350
To reflect the previous year from your current year.
01:07:45.360 --> 01:07:50.730
In essence, right like that, there's gonna be the the chicken and the egg thing, which is again, I I take the point.
01:07:50.740 --> 01:07:55.100
Like there needs to be front loaded money to the SO in order to stand the program up.
01:07:55.220 --> 01:08:11.090
I think the the RFP could do that, but in terms if if there were a regulatory requirement created as we move into the regulatory phases, that said every producer, the second you introduce a new UPC code, it needs to be reported to DEP.
01:08:12.530 --> 01:08:13.990
You will never stop receiving.
01:08:15.090 --> 01:08:18.080
You know, hourly new UPC codes.
01:08:18.090 --> 01:08:35.110
If the requirement is structured as such, if the regulatory requirement is structured to say there is flexibility to the SO to collect a range of there, there's also brick codes which are technically part of the UPC code.
01:08:35.180 --> 01:08:36.830
It's what we use in the.
01:08:36.840 --> 01:08:46.220
I believe in the chemicals program, the Children's Chemicals program, where it's part of the UPC code, but reporting is made at the brick level.
01:08:47.170 --> 01:09:02.100
And what a company could do is say I sell potato chips, not I sell ranch potato chips, sour cream potato chips, nuclear hot potato chips and Old Bay Potato chips, which are all different at UPC codes.
01:09:02.110 --> 01:09:13.760
They could say we sell potato chips that are in here's the brick code and it's all for flows from GS1 and their database system.
01:09:14.230 --> 01:09:26.440
And so you can have reporting based at that brick code level, Washington State Department of Ecology and their Children's Chemicals Regulatory program sort of pioneered brick code level reporting.
01:09:26.530 --> 01:09:30.260
Again, it's part of UPC, but it's just it doesn't.
01:09:33.210 --> 01:09:33.480
Right.
01:09:30.270 --> 01:09:37.150
It's like if you think about it long string of numbers, it doesn't include the last 6 numbers, so you know you don't.
01:09:38.340 --> 01:09:39.600
You you're getting the chips.
01:09:40.530 --> 01:10:02.400
You're just not getting all the 12 UPC codes underneath that that then change and you could require reporting at that brick code level and for the so to receive an annual or a quarterly report that has data on that brick code on the types of packaging.
01:10:02.410 --> 01:10:06.980
You're not going to use like different packaging amongst your 12 different flavors of chips.
01:10:07.080 --> 01:10:20.800
Those are going to be the same types of packaging, you know, materials, same sizes, because retailers to Curtis don't wanna have different sizes of ranch versus flaming nuclear hot potato chips. Right.
01:10:21.230 --> 01:10:28.150
So it's going to you're not going to lose material data for fees or for incentives and all of that.
01:10:28.230 --> 01:10:41.040
That so I think there's a way that the regulation could be structured in a flexible nature or reporting to get at categories of products sold within that UPC sense.
01:10:41.050 --> 01:10:52.650
So we're not running afoul of the statute, but not requiring, you know, the the additional 6 numbers that go after the brick code level is my suggestion.
01:10:53.950 --> 01:10:56.220
So sorry, I'm just gonna repeat back.
01:10:56.230 --> 01:10:57.120
Make sure I understood.
01:10:57.530 --> 01:10:58.020
That's OK.
01:10:59.080 --> 01:11:11.530
In March, a producer reports, and they say during calendar year previous I sold 100 bags of potato chips with this brick code.
01:11:13.710 --> 01:11:13.850
Yes.
01:11:15.080 --> 01:11:24.930
If they changed their packaging during the year, they would say during the previous year calendar year I sold 50 bags of potato chips with this brick code and or they could it.
01:11:24.940 --> 01:11:28.170
Maybe it all has the same brick code, but I sold 50 bags that have these.
01:11:28.360 --> 01:11:30.420
They look like this and 50 bags that look like this.
01:11:31.100 --> 01:11:33.400
Yeah, we transitioned midway through the year.
01:11:33.410 --> 01:11:41.390
They provide that data to the SO and says what you know for the first six months of the year we were in multi material flexibles.
01:11:41.400 --> 01:11:43.290
Then we shifted to a paper bag.
01:11:43.880 --> 01:11:47.120
The chips were stale in 3 days, but that's neither here nor there.
01:11:47.130 --> 01:11:53.670
We switched to a paper bag six months of the year in order to to reduce our--.
01:11:53.680 --> 01:11:54.830
I'm sorry, I'm not joking.
01:11:55.810 --> 01:11:56.570
Not right. Like.
01:11:54.840 --> 01:11:56.590
But you know the food.
01:11:56.830 --> 01:11:57.580
The fees change.
01:11:58.810 --> 01:11:59.000
Yeah.
01:11:56.580 --> 01:12:00.630
Yes, it's a funny example that thank you.
01:12:00.010 --> 01:12:00.640
Umm.
01:12:01.520 --> 01:12:03.490
So yeah, that that I think could happen.
01:12:03.580 --> 01:12:16.420
Yeah, brick code could still get the data on the material type for that brick code without losing necessary reporting elements that link back to fees and link back to the other elements of the law.
01:12:17.870 --> 01:12:18.540
That's very helpful.
01:12:18.550 --> 01:12:18.840
Thank you.
01:12:21.560 --> 01:12:22.940
Looks like I got a a.
01:12:23.000 --> 01:12:26.880
I'll keep you on Neil's or Andy as a presenter and I have to go to Neil Cowles.
e
01:12:37.650 --> 01:12:39.440
Hello, can you hear me?
01:12:39.450 --> 01:12:39.850
Can you see me?
01:12:38.870 --> 01:12:41.130
Hello as we can.
01:12:41.960 --> 01:12:42.400
Great.
01:12:43.620 --> 01:12:50.150
Umm yeah, I guess I wanted to maybe just talk to Curtis and Andy and question about some of the things.
01:12:51.200 --> 01:13:00.870
I think the way that I've been thinking about this, you know, I come from a technology background and you know we do system integration, you know handling lots of data all the time.
01:13:01.740 --> 01:13:13.530
And uh, it seemed like main was the first state, you know, Oregon, Washington or California and Colorado have all path EPR.
01:13:13.640 --> 01:13:18.030
Probably there's gonna be more states that pass this in the future.
01:13:20.630 --> 01:13:27.780
It seemed like we would want to get on a a set of standards for for EPR reporting.
01:13:28.270 --> 01:13:31.140
I don't know that those exist yet.
01:13:31.390 --> 01:13:44.860
I know that they exist in the in the UK I was able to find some some data data standards we could potentially use those as as reference, but I think largely it would.
01:13:45.130 --> 01:13:48.650
It would behoove that the producers to have a standard.
01:13:48.660 --> 01:14:14.010
That way you don't have a specific standard of data transmission for Maine, another one for Colorado, like it's all the same data transmission like you just you just have to essentially generate the same report, but you know for a geographic area, umm that was I didn't know if if you guys had any access to any information about this or if there's anything like this that that you're aware of.
01:14:16.610 --> 01:14:17.390
I I don't know.
01:14:17.400 --> 01:14:21.580
I'm not close enough to the Canadian programs to know how they're sharing data.
01:14:21.590 --> 01:14:25.370
I mean, obviously the four states that we've got on the books are are different.
01:14:25.480 --> 01:14:31.150
All of the statutes are different, and Neil, actually, maybe the type of person that could answer some of that.
01:14:31.500 --> 01:14:47.980
I will say some of it will hinge on the so that selected between the states that and and or California and Oregon allow the potential for multiple SO's or PRO's and those states.
01:14:47.990 --> 01:14:53.580
So some of it depends on on how that shapes up on.
01:14:53.590 --> 01:15:10.020
I mean that's that's the first step in sort of getting the uniformity is having, you know, a uniform entity that's coordinated amongst the data flows, but that that's somewhat in the hands of of the selection of the RFP process here in Maine.
01:15:14.430 --> 01:15:18.530
OK, I'm gonna make Neil a presenter.
01:15:21.830 --> 01:15:22.480
Another Neal.
01:15:23.000 --> 01:15:23.220
Yeah.
01:15:23.230 --> 01:15:24.760
Another Neil. Yeah.
01:15:27.520 --> 01:15:27.870
Hi there.
01:15:27.880 --> 01:15:28.310
Can you hear me?
01:15:29.150 --> 01:15:29.590
Yes, yes.
01:15:30.720 --> 01:15:45.790
And Neil from General Mills and now we've done a lot of work with EPR in the Canadian side, in the Canadian reporting, they don't ask for a skew level data typically in a way because you're managing thousands of companies information.
01:15:45.800 --> 01:16:19.570
They just require the weight to be reported by the different packaging types, plus they'll provide you an opportunity to list all of the different brands, similar to what any kind of mentioned in terms of bricks, just a different brands are captured because the intent is to make sure there isn't a free writer in the system to get skew level data and not have the ability to look back to see whether that product was sold or how much of it is sold becomes increasingly more complex and the extension of that is when we're talking about skews.
01:16:20.390 --> 01:16:26.410
I think the examples provided we're talking about chip bags where it just one material below this queues are multi packages.
01:16:27.110 --> 01:16:32.280
It can have a plastic overlap with a cardboard box cereal liner inside.
01:16:32.330 --> 01:16:51.700
So not only you're now looking for a specific skew, you're looking for the bill of material that goes along and breaks it down by individual packaging component and your data structure just becomes increasingly difficult when you multiply it by the thousands of companies that will become obligated in this space it gets.
01:16:51.760 --> 01:17:00.200
To the point where you're you'll be so overwhelmed with data it will just sit and collect and it will never get used.
01:17:00.210 --> 01:17:05.040
And it just creates a additional administrative burden for everyone to just manage that system.
01:17:05.670 --> 01:17:21.920
You do want the ability to potentially audit certain companies to say if there's a material that doesn't seem to be reported, then the SO has a process to say, give us a list of your SKUs and we'll look at that specific company for specific year.
01:17:21.970 --> 01:17:30.750
So there is no free riding under avoiding systems, but overall you don't want that large data flows because there's also confidential like you have now.
01:17:31.040 --> 01:17:40.200
Sales specific information by brand by skew and it's a no one in the Canadian landscape has entertained that.
01:17:40.360 --> 01:17:44.850
And I would, you know, on the European side, they steer clear from skill level data.
01:17:44.900 --> 01:17:59.100
They want to know the packaging reported and the weights, but they don't want sales by SKU because that's just a whole large data set that knowing we even with our massive database and we're one company, it's a massive data.
01:18:00.070 --> 01:18:03.570
Uh exercise. Thanks.
01:18:06.480 --> 01:18:07.770
And I have a quick question.
01:18:08.110 --> 01:18:08.230
Sure.
01:18:07.860 --> 01:18:21.670
So when you're doing your reporting and getting your full weights of each of the package types, do you work with SKU level data and add it up and just send it in as a consolidated number?
01:18:21.680 --> 01:18:26.790
Or do you do you do something different to get those total weights that you send in?
01:18:27.450 --> 01:18:30.090
So it for the most part, we consolidate all of it.
01:18:30.100 --> 01:18:37.840
So we do manage the steel level data and takes as it takes us a a while to kind of prepare the information.
01:18:38.120 --> 01:18:44.630
The other challenging part we get into is as a brand, we don't have visibility to what's actually sold in Maine.
01:18:44.900 --> 01:18:51.450
We know what we sold to our customer being the retailers who may have a distribution center from there that they distributed out.
01:18:52.360 --> 01:18:57.380
So that's the other next level of complexity that gets layered into this type of reporting.
01:18:58.160 --> 01:19:04.450
Umm is how much it actually sold in the state rather than what was shipped to the state and then transferred out of bed.
01:19:04.980 --> 01:19:24.070
So for us, we make our best estimates for what was sold in the state and then the inside the province to account for our obligated materials, but we consolidate it to just a few categories that's required in you know the EPR programs have the ability to audit any of the brands.
01:19:24.080 --> 01:19:31.010
If they see something seems off or have reason to believe something is missing or hasn't been accurately captured in the system.
01:19:33.390 --> 01:19:38.090
And then you're required to potentially provide that SKU level data if it's if asked for.
01:19:38.570 --> 01:19:39.290
Exactly.
01:19:39.450 --> 01:19:39.860
Exactly.
01:19:39.870 --> 01:19:52.260
So it's not a they have the ability to audit because you always want the ability to make sure there are no free riders or anyone trying to game the system, but it's not an annual exercise where thousands of companies are providing scalable data.
01:19:52.270 --> 01:20:04.300
It may be 30 to 50 companies that get audited where there's actually like a magnitude of an impact that they avoided 5 or 10% of their sales could be a significant cost impact.
01:20:07.340 --> 01:20:07.700
Thank you.
01:20:13.290 --> 01:20:15.240
Any any other questions?
01:20:15.250 --> 01:20:17.340
We seem to have that.
01:20:17.350 --> 01:20:17.900
OK.
01:20:18.290 --> 01:20:21.530
Thank you Curtis, Andy and Neils.
01:20:22.940 --> 01:20:23.260
Thank you.
01:20:28.250 --> 01:20:28.470
Yeah.
01:20:28.480 --> 01:20:36.940
We'll move along if anybody else has a comment that they wanna share, you could put a hand up if you're online and we'll give you the floor.
01:20:37.000 --> 01:20:37.300
Work.
01:21:02.650 --> 01:21:04.270
OK, no, hands went up. No.
01:21:04.280 --> 01:21:04.980
Yeah, they're up.
01:21:05.780 --> 01:21:08.080
OK. Hi.
01:21:12.020 --> 01:21:13.270
You're doing a presentation like.
01:21:13.280 --> 01:21:17.710
This is the table with virtual people, so good afternoon and everybody.
01:21:17.720 --> 01:21:22.090
My name is Sarah Nichols and I'm Sustainable Maine Director for the Natural Resources Council of Maine.
01:21:22.670 --> 01:21:32.530
Thank you for this opportunity to comment on the producer fees for Maine's packaging law and NRCM remains committed to working with the department and stakeholders to ensure the success of this transformative program.
01:21:33.020 --> 01:21:40.230
The shift from an inequitable, inefficient, taxpayer funded system to a fairer and more systematic producer funded approach is the backbone of this law.
01:21:41.190 --> 01:21:52.340
Will submit more detailed written comments prior to answer some of the questions in the background document later, but today we're focusing on ensuring that producers are charged fees only on packaging materials that they sell into our state.
01:21:52.730 --> 01:21:59.110
And that are left to be managed by means municipalities and we have our top ten recommendations for eco modulation.
01:22:00.210 --> 01:22:11.220
So to get started, we believe that producer fee should be assessed on a net material basis, meaning that producers only have an obligation to pay fees on the total weight and volume of material that is managed to remains municipal program.
01:22:12.110 --> 01:22:38.060
So for instance, if a beverage producer sells 10,00 4-packs in Maine that are held together by a pack tech, but they run a program where consumers may return pack techs, that results in a 75% collection rate, whether they're collecting their own or another producers, and they've thereby kept 7500 of those pack techs from the municipal waste recycling programs, then that producer only pays fees on the 2500 that they put out into the world and didn't collect back.
01:22:39.650 --> 01:22:42.940
OK, another example would be the sale of products and reusable packaging.
01:22:43.270 --> 01:22:49.210
Producer should only have to pay fees on reusable packaging if the packaging is managed and paid for by Maine's municipal systems.
01:22:50.050 --> 01:22:55.350
So let's say restaurant reusable take out containers and they collect back half of them to be reused.
01:22:55.820 --> 01:23:02.500
They only pay half of the total fees to the SO for the weight and volume of that material type or types that make up the reusable packaging.
01:23:03.470 --> 01:23:14.480
Furthermore, alternative collection programs, which I believe we're talking about later in August, are designed to take the burden of waste management off of municipalities and allow for the producers to manage their material separately.
01:23:15.740 --> 01:23:17.750
So one example could be for glass packaging.
01:23:17.980 --> 01:23:26.460
This is an ideal material category for an alternative collection program since its removal from municipal systems will save money and increase the quality of all recycled commodities.
01:23:27.040 --> 01:23:33.270
Last packaging producers could report their sales and collection figures and audits could help verify these numbers.
01:23:33.620 --> 01:23:43.840
And then the producers of glass should only have to pay fees to the stewardship organization on the glass that is managed through the municipal system, not the material that they collected in their alternative question program.
01:23:45.490 --> 01:23:52.410
So then for materials left for Maine's municipalities, to manage the basic fees should begin with the actual cost needed to meet the overall anticipated budget.
01:23:53.400 --> 01:24:11.070
Fees should be generally assessed on the cost to collect, process and manage that material by type and volume net with revenue umm and material fee category should be as granular as possible if the materials incur different costs because of their attributes and they should be able to be measured and verified.
01:24:13.230 --> 01:24:20.400
Then producer fee should be adjusted or eco modulated in a way that works to disincentivize the most problematic costly materials and their attributes.
01:24:20.950 --> 01:24:26.130
Generally, the cost of each material should be higher the more the health and environmental cost of that material type.
01:24:27.080 --> 01:24:47.040
So, for instance, plastics might not have a high cost to manage their disposal overall, but this material type may create or contain toxins that harm human health and wildlife throughout their life cycle, and lightweight, flexible plastics may often end up as windblown litter, entangle, recycling equipment, or contaminate the recycling stream and bring down the quality of the recycled commodities.
01:24:47.930 --> 01:25:02.840
Those costs should be reflected by eco modulation to signal to the producer that they may want to switch to a more sustainable package of choice to avoid the full costs of their choices in our system and society, though, here's our top ten overall recommendations regarding eco modulation.
01:25:04.080 --> 01:25:11.930
1st is that all eco modulation should be done in a way that does not threaten the ability of the stewardship organization to collect enough funds to ensure the success of the program.
01:25:12.990 --> 01:25:19.450
So that means the system of financial penalties or those malice payments should be primarily used and any fee reductions or bonuses?
01:25:20.320 --> 01:25:28.000
Umm should be subsequently adjusted such that the total bonuses do not exceed the total malice adjustments to avoid starving the program of needed funds.
01:25:29.660 --> 01:25:38.150
Two, we encourage the department to work with other states to create consistency for producers, and so that the incentives used encourage producers to swap problematic packaging for more.
01:25:38.160 --> 01:25:44.300
Sustainable alternatives are uniform in the United States and therefore have the most potential to be effective at changing packaging design.
01:25:45.950 --> 01:26:12.570
Three, any criteria used for eco modulation should be measurable and verifiable as well as able to be assessed as to the effectiveness of the fees on deterring the use of the less desirable packaging materials or an adjustment for volume should be made such that lightweight but bulky materials that take up just as much room in a truck or in a landfill pay their fair share of landfill space and trucking 5 NRCM endorses the US Plastics Pact.
01:26:12.580 --> 01:26:19.020
Problematic and Unnecessary materials list as a starting point for assessing higher fees for their use.
01:26:19.980 --> 01:26:31.530
In addition to providing financial disincentive to discontinue the use of these problematic and unnecessary materials, we would gain insight into the quantity and source of the materials and be able to compare their presence in Maine year to year.
01:26:33.090 --> 01:26:34.620
But that said, when an echo what?
01:26:34.630 --> 01:26:43.080
Susan Bush had said maybe prudent to take an incremental approach to equal modulation to focus first on increasing reuse and readily recyclable packaging.
01:26:43.230 --> 01:26:52.880
And maybe disincentivizing the most problematic material types, this could reduce complexity and guage effectiveness of the fees before the criteria are expanded upon and scaled up over time.
01:26:54.460 --> 01:27:07.180
Seven, it's important to note that some types of packaging may not have viable substitutes or required to be a certain way by state or federal law, so adding malice, additional malice fees to packaging for these products may not be fair or effective.
01:27:08.100 --> 01:27:11.430
Well, we do not support exempting packaging completely from fee payments.
01:27:11.440 --> 01:27:36.160
We do support exempting certain packaging, malice payments or fee payments above what they would use in absence of the law or requirement if they are able to provide the information needed to make that determination 8 NRCM does not support the incentives for the use of compostable packaging, particularly because our municipal systems do not currently manage that material at scale, and it may have a higher environmental footprint than their reusable or recyclable counterparts.
01:27:37.090 --> 01:27:37.700
Nine.
01:27:38.130 --> 01:28:00.800
While recyclability should impact the fee and the producers of readily recyclable materials should pay fewer fees and NRCM does not believe that the recycling rate should be used to determine fees because the producer is responsible for designing the packaging and not for the recycling or collection of that packaging and Maine's system and 10 what we mostly support the use of the malice fees or penalty payments for unsustainable packaging choices.
01:28:00.810 --> 01:28:19.800
We think that some criteria may be beneficial to have for bonuses or reduced fees if a producer takes the time to calculate and verify that they have used post consumer recycled content or accurate consumer labeling and have had successful efforts to educate consumers to reduce waste and litter and increase recycling on their own, then those would be ideal categories for fee reductions.
01:28:20.780 --> 01:28:24.240
I'll call in that there and thank you for listening, yes.
01:28:31.090 --> 01:28:33.610
So we'll open up the floor for clarifying questions.
01:28:35.780 --> 01:28:36.500
I gotta bunch.
01:28:36.510 --> 01:28:37.090
Ohh, great.
01:28:38.410 --> 01:28:39.800
OK, OK.
01:28:39.810 --> 01:28:49.540
So your first two examples of a reusable package collected by a restaurant or a four pack pop of a beer.
01:28:50.050 --> 01:28:52.030
or container collected.
01:28:52.700 --> 01:29:00.720
You're thinking that those should those collection systems are not alternative collection programs, that there's something different that there should be a two different sets.
01:29:02.200 --> 01:29:07.370
I yes, I think there could be an official alternative collection program for those things.
01:29:07.420 --> 01:29:19.320
Maybe, but if there's not, I still think the producer should have the ability to to track the track what they collected back and kept that the municipal system, without having an approved alternative collection program.
01:29:19.330 --> 01:29:20.020
I think so.
01:29:20.030 --> 01:29:21.750
Because what?
01:29:21.760 --> 01:29:22.110
Like what?
01:29:22.120 --> 01:29:34.910
If there's one producer and Maine that wants to do that, but they have a hard time getting everybody else on board with doing that and putting it all over the state, where else you need, that's going to disincentivize them from having that program.
01:29:34.920 --> 01:29:38.530
If they can't actually reduce their fees from doing it, I don't think that that's fair.
01:29:38.960 --> 01:29:39.370
So.
01:29:39.380 --> 01:29:50.820
So just so they wouldn't be able to potentially do it because maybe there are they have one location and so they're not picking up all over the state, yeah or however you're gonna do that, I'll turn the collection programs.
01:29:54.530 --> 01:29:56.710
OK. Umm.
01:30:02.140 --> 01:30:11.520
When you talked about eco modulation priorities, you talked about full environmental impact.
01:30:11.770 --> 01:30:13.220
You talked about reuse.
01:30:13.230 --> 01:30:16.210
You talked about uniform in the US when you say?
01:30:22.430 --> 01:30:23.440
So so I guess.
01:30:29.660 --> 01:30:31.010
Which are you advocating for?
01:30:31.020 --> 01:30:33.650
Are you advocating that we try to match?
01:30:34.420 --> 01:30:38.620
What else is happening in the US, or are you advocating that we tried to?
01:30:39.940 --> 01:30:42.260
Provide eco modulation for.
01:30:42.310 --> 01:30:45.650
Or, uh, full environmental impacts?
01:30:45.720 --> 01:30:49.290
And if so, is that life cycle analysis is that I?
01:30:49.360 --> 01:31:06.660
I guess I didn't quite understand what you're I think you're trying to say, but similar to what Susan said, I think ideally we want to get to a place where we're really alright getting to a a more granular eco modulation.
01:31:06.670 --> 01:31:15.190
But at first, maybe we try to not have it be as complex and work with the other states to focus on like some low hanging fruit type things that are easily.
01:31:18.750 --> 01:31:26.120
Able to be measured and quantified on and get it that first I guess and not necessarily come out of the gate.
01:31:26.130 --> 01:31:34.380
I don't personally love life cycle analyses, but I'm more mentioned that in in regards to the compostable packaging and then with plastics in particular.
01:31:34.670 --> 01:31:43.810
I think that if we don't think about where some of these materials are being made and the impacts of those, then we're losing a big part of the cost story.
01:31:44.780 --> 01:31:50.740
But I don't necessarily think we need to come out of the gate with that level would be, you know, that makes sense.
01:31:51.150 --> 01:31:54.380
And I got one more question about the alternative collection program.
01:31:54.390 --> 01:32:11.730
So if I am a beer company and I am based in Portland and I I sell beer throughtout state and I collect back uh pieces of my packaging in Portland.
01:32:12.890 --> 01:32:13.240
Umm.
01:32:13.380 --> 01:32:21.710
At my facility and not anywhere else in the state, you're thinking that I should get credit for all of that, even though I'm not providing.
01:32:22.180 --> 01:32:29.310
I'm potentially sending my packaging to Aroostook County and I'm not paying to get that packaging out of Aroostook county.
01:32:29.320 --> 01:32:30.790
I'm paying to collect that packaging in Portland.
01:32:32.750 --> 01:32:38.680
Umm yeah, I think it should be net material that they've put out into the world to be left to municipalities to pay for.
01:32:41.280 --> 01:32:41.660
Thank you.
01:32:45.750 --> 01:32:49.380
He questions from the virtual world.
01:32:58.550 --> 01:32:59.540
So yeah, that was a lot.
01:32:59.770 --> 01:33:00.010
Yeah.
01:33:02.700 --> 01:33:03.670
And get a coffee.
01:33:03.680 --> 01:33:04.250
OK.
01:33:04.400 --> 01:33:05.050
I guess not.
01:33:05.060 --> 01:33:05.590
OK.
01:33:05.660 --> 01:33:06.840
And now others from here.
01:33:07.900 --> 01:33:15.330
And I think at this point, umm, I'll just, yeah, we had a few others registered to share comment.
01:33:15.340 --> 01:33:20.050
I'm not too sure if you all are still planning on sharing comments.
01:33:20.060 --> 01:33:30.510
So, uh, I might end up calling names now unless we have anybody who wants to volunteer to share their comments next.
01:33:35.720 --> 01:33:37.870
Yeah, the comments.
01:33:37.980 --> 01:33:40.300
I'm just asking, maybe we'll just approach it like that.
01:33:40.310 --> 01:33:42.290
Does anybody else have comments?
01:33:51.570 --> 01:33:54.100
No one do it again.
01:33:54.290 --> 01:33:55.210
Yeah. Ohh.
01:34:06.790 --> 01:34:18.100
There are any, any anything we want to pose to the IT it looks like we've we've got all the comments shared that needed to be shared.
01:34:18.110 --> 01:34:21.360
So we might want to wrap up now.
01:34:21.410 --> 01:34:29.000
So last last call, anybody has any comments to share, go ahead, put a hand up and we'll give you the floor.
01:34:29.290 --> 01:34:49.920
If not, uh, we're ongoing with the acceptance of written comments to the email address mainepackagingEPR@maine.gov and we will publicize all the comments we receive through our programs website.
01:34:50.370 --> 01:34:55.660
Our next meeting is July 25th, same time, same place and.
01:34:59.340 --> 01:35:02.150
That's that's all the comments I have to share.
01:35:02.160 --> 01:35:03.940
Are there any else?
01:35:08.860 --> 01:35:09.910
90 minutes.
01:35:10.200 --> 01:35:11.010
OK.
01:35:11.100 --> 01:35:12.290
Well, wow.
01:35:12.300 --> 01:35:12.810
OK.
01:35:12.920 --> 01:35:14.330
We're all OK.
01:35:14.340 --> 01:35:15.100
Thank you everyone.
01:35:15.110 --> 01:35:15.620
Thank you.
01:35:18.960 --> 01:35:23.270
It's kind of well we what do we have some recording first?
01:35:23.310 --> 01:35:26.150
Ohh that's really bad.
01:35:29.420 --> 01:35:29.890
Wait, did you?
01:35:29.900 --> 01:35:30.080
Never.
01:35:31.980 --> 01:35:32.260
Always.
01:35:33.140 --> 01:35:34.430
You don't do that.